number 1

1. Consider the following information for the Foreign Investment Company (FIC). The company is holding the following 4 Investments. The risk-free rate is 5 percent and the market risk premium is also 5 percent. If the manager sells half of her investment in C and puts the money in D, by how many percentage points will her portfolio's required return approximately increase? * Beta A B Investment Amount $440 $165 $315 $80 1.2 0.5 -0.8 1.3 D OA) 0.5% OB) 2.10% OC)1.65% OD) 7.31% O E) None of the above